Cryptocurrencies have caused a stir among both mainstream financial experts and everyday consumers in recent months. Thanks to last year’s bull run, more people than ever know about Bitcoin and different “altcoins”. However, the reaction hasn’t been totally positive. Hence, a lot of folks are very skeptical of Bitcoin and the blockchain, leading to a lot of misinformation. Thus, some of these untruths have morphed into widely held but false beliefs about cryptocurrencies.
“They are worthless”
Likely one of the biggest myths that people enjoy circulating, is that, they have no value. This is simply not true. One needs to understand that other goods and services do not acquire their value due to an inherent worthiness. Value is acquired based on what people are willing to pay for it. If you’d like to see this in action, then you can compare a designer t-shirt to a department store one. Is the designer shirt really worth that much more material wise? Not likely, but people have placed more value on designer items thanks to branding. This mentality applies to literally everything in life.
No practical use case – Only for criminals
There are those who bash cryptocurrencies for not having any practical applications. This has also been proven false. The average user may not see the immediate need for them in their everyday transactions. Especially, in developed countries where they have the convenience of credit cards and online banking. However, they can still be useful for many other purposes. For example, the speed and efficiency of the blockchain enables global remittance, allowing money to cross borders instantaneously instead of waiting days for settlement to occur.
This puts cryptocurrencies in a place that is far outside the box created by the average user, who largely thinks cryptocurrencies are strictly for illegal transactions. While it’s easy to think that, the fact is that criminals actually prefer to utilize cash. Most cryptocurrencies are not as anonymous as you think, and people who commit crimes don’t want all of their activity recorded in a ledger believe it or not.
Coins and the Blockchain are the same.
The most common misconception though, is that, the blockchain and cryptocurrencies are the same thing. Cryptocurrencies simply use the blockchain to function. They are as different as night and day, and the blockchain can be applied to many more things other than just crypto currencies. As time passes, this would likely be the most laughable of all these myths. Every day, there are more innovative technologies being developed via the blockchain, to help us find real solutions to problems in our everyday lives.